JUN 8 – 10, 2015

www.bermudacaptive.bm

Relevancy of the Bermuda Market in Relevancy of the Bermuda Market in a Fast Changing Worlda Fast Changing World

Speakers:

• Alan Waring, CEO, International Specialty Brokers Limited

• Rees Fletcher, Chairman, ACE Bermuda • Patrick Tannock, President, XL Insurance

(Bermuda) Ltd.

Discussion areas:• Unique customer focused solutions customized to

complement the captive insurance industry• Is Bermuda still the best suited domicile to provide low

frequency high severity type products?• High quality cost efficient capacity  from highly rated

carriers• New product differentiation• Do customers still value the Bermuda market ability to

execute quickly to put capital to work to provide solutions to emerging issues?

• Impact of Consolidation

A Little History

• 1947 – CV Starr Selects Bermuda for American International Underwriters

• 1960’s – Fred Reiss Selects Bermuda for his Captive Insurance Concept – Bermuda becomes and remains largest domicile

• 1970’s/80’s – captives write 3rd party business due to US tax rules. Creates Bermuda insurance/reinsurance market

• 1985 – Liability crisis – ACE Formed, Followed by XL,CODA and then Starr Excess

• 1988 - Finite/Financial – Centre Re Formed – Bermuda begins its global reputation for innovation

• 1993 – post Andrew - Property Cat – Mid Ocean Re, Ren Re, etc

• 1997/98 – Transformer Companies – Arrow Re, Lehman Re, CGA – develops into companies trading risk to Hedge funds

• 2002 – post 9/11 - Treaty Reinsurance & Insurance Capacity

• 2005 – post Katrina – Reinsurance and Insurance Capacity

• 2007 – Side cars emerge – to allow quick entry/exit for investors

• 2006 – various London companies move to Bermuda & Bermuda companies continue to establish London and Lloyds operations

• 2010 – Bermuda establishes itself as leader in Insurance Linked Securities

Bermuda Stats and Facts

• Capital and Surplus in excess of $500bn• Annual Premium into market in excess of $120bn• $500m to $1bn of capacity in each of Property, Casualty &

Professional• World’s Largest Captive Domicile• In Top 2 Global Reinsurance Centers• Leader outside US for Liability capacity for US risks• The leader for Property Cat Reinsurance• Leading ILS Market• Provide 26% of the capacity for Lloyds of Londonii• Write 14% of aggregate global reinsurance premium• Include 15 of the top 40 reinsurers in the world

Stats and Facts

• Bermuda’s reinsurers paid nearly 30% of the insured losses from 2005 Hurricanes Katrina, Rita and Wilma

• Bermuda’s reinsurers paid $22 billion to rebuild the US Gulf and Florida coasts from the horrific hurricanes seasons of 2004 and 2005

• Bermuda’s carriers provide more than 60% of the hurricane reinsurance in Florida and Texas.

• Bermuda’s carriers provide up to one third of US crop reinsurance in key states

• Bermuda’s carriers support 25% of the US medical liability insurance and reinsurance market

• Bermuda’s reinsurers contributed $35 Billion between 2001-2012 to U.S. catastrophe losses

(Source – ABIR Fact Sheet June 2015)

Stats and Facts

• 50% of the reported losses for the 2012 Costa Concordia cruise liner sinking

• 16% of the reported liabilities for United States’ 2012 Hurricane Sandy

• 29% of the reported liabilities for the international reinsured share of the 2011 Japanese earthquake.

• 37% of the reported liabilities for Europe’s 2010 Windstorm Xynthia

• 38% of the reported liabilities for Chile’s 2010 earthquake

• 51% of the reported liabilities for New Zealand’s aggregated 2010 and 2011 earthquakes

• 22% of the theoretical $1 Billion market loss for the 2009 Air France crash

(Source – ABIR Fact Sheet June 2015)